The amount of money being borrowed by homeowners last month soared to its highest June level for eight years, according to estimates.

Total loan advances reached £20.7bn, the Council of Mortgage Lenders (CML) said. That was 16% higher than the previous month, and 3% more than in the same month last year. The number of homes sold rose by 4.9% during the month, according to separate figures from HM Revenue and Customs.

The figures reflect the run-up to the EU referendum on June 23, and suggest that homebuyers did not necessarily sit on the sidelines waiting for the result of the vote.

However higher mortgage lending also reflects higher house prices, which are still rising at 8.4% a year, according to the Halifax.